Main benefits or advantages of time-wage or time rate system of wage payment are as follows:
1. Simplicity
Time rate system is very simple method of wage payment. Computation of wage is very easy in this system. It can be easily calculated by using the following formula:
Total Wage = Hours Spent x Wage Rate Per Hour
2. Economical System
Time rate system is the most economical system of wage payment. It requires less clerical expenses. It does not require output details to calculate the wage amount. So, it is less time consuming.
3. Fixed Minimum Wage
In time rate system, employees are assured of regular income because it offers minimum wage to them. It helps to create a sense of economic security among them.
4. Equality
Time rate system offers uniform rate of wage to the employees. It is very beneficial for less efficient workers. It helps to maintain equality,unity and harmony in the organization.
5. Quality Of Production
5. Quality Of Production
Time rate system helps to maintain quality of output. Workers do not have to rush and work in a hurry to earn more. They can complete their job slowly and carefully. It also helps to reduce the wastage in production process.
Also Read:
6. Better Industrial Relationship
Time rate system is accepted by the trade unions because there is no discrimination in wage payment to the workers. So, it helps to promote industrial relationship and there is less chance of resentment.
